At present, the water pollution has become a severe problem in the Taihu Basin. The water scarcity caused by pollution has annually reached to 2-3.5 billions m³ in the basin. The water pollution will be a big problem in the next few decades, which may affect the sustainable socio-economic development in the Taihu Basin. On the base of water pollution control in the Taihu Basin, it is suggested that the Yangzhe River, Taihu Lake and the reservoirs in the mountainous area in the upper reaches should be chosen as the main drinking water sources in the long term and more clean water from River Yangtze into Taihu Lake be diverted in order to meet the need of supplying enough water with better quality. It is also suggested to discharge the wastewater from the basin to the East Sea and Hangzhou bay after the secondary treatment.